Despite continued assertions by automakers that Covisint will bring massive cost breaks to the auto industry, the Internet trade exchange could in reality mean procurement savings of less than 15%, says Kevin Prouty, senior analyst, AMR Research Inc. While OEMs have touted savings of as much as 50% on $250 billion in total procurement costs, Mr. Prouty believes a more accurate savings figure would be $37 billion, or less than 15%. Of that, aggregated savings will be less than 2% of the ...
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